August 22, 2007

Banks to step back in time

With the news of how “Subprime” mortgages have hit the financial markets hard, it is no surprise to see that US banks are thinking about returning to the old ways of banking. This would mean that the way they do business might radically change. Although mortgage companies do business in a different manner, with no down payments or even income proof, banks have nearly always kept these applications at arms length.

So if the banks in America are looking towards this way of doing business, then perhaps this may gradually creep over here. The banks are under the media microscope with regards to charges etc, so maybe this is time for them to start again. By introducing new standards and indeed new charges.

Source [Boston]

Filed Under Money